USDZAR Pull-back or break-out buy

The USDZAR pair has been trading within a Fibonacci Channel since June 07 2021, with one break-out to the 1.382 extension. At the moment it is supported by the 1D MA50 (blue trend-line) and is attempting to break a Lower Highs trend-line. A closing above it should be enough to test the Resistance Zone. Only a break above the 1.0 Fib can justify further buying as a break-out signal to the 1.382 Fib extension again. Until then, it is safer to wait for a pull-back, which is common for these Lower Highs (dashed line) patterns within the Channel. Either above the 0.786 retracement level or near the bottom of the Channel.



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